Blockstream Refuses Ransom Demand After $47M Bitcoin Stolen from Liquid Network
(21 days ago) · 1 source · Summarized by CryptoBipto — how we make this
Blockstream has publicly refused to pay a ransom demanded by hackers who stole approximately $47 million worth of Bitcoin from its Liquid sidechain network. The company characterized the incident as theft and declined to negotiate with the attackers for the return of the funds.
WHY IT MATTERS
A sidechain is like a secondary road that runs alongside a main highway — in this case, the Bitcoin blockchain. The Liquid Network lets people move Bitcoin onto this side road for faster or more private transactions, but the Bitcoin is held in a kind of shared vault managed by a group of trusted companies. In this incident, hackers reportedly broke into that vault and stole about $47 million worth of Bitcoin. The hackers then demanded a ransom — essentially asking Blockstream to pay them in exchange for returning the stolen funds. Blockstream refused, calling it theft. This event is significant because it highlights the security risks that exist even in well-known crypto infrastructure projects, and it raises questions about how digital assets held by third parties are protected.
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